[Click eStock] JYP Entertainment, Growth Driven by New Artists and New Businesses... Target Price Upward Revised

[Asia Economy Reporter Song Hwajeong] NH Investment & Securities raised the target price for JYP Ent. (hereinafter JYP Entertainment) from 46,000 KRW to 59,000 KRW on the 6th, expecting growth driven by rookies and new businesses. The investment opinion was maintained as 'Buy.'

Researcher Lee Hwajeong of NH Investment & Securities said, "The target price was raised by changing the base year for target price calculation to 2022 and increasing the multiple to 40 times, considering the possibility of new business developments related to the metaverse and non-fungible tokens (NFTs)." She added, "The benefits from the resumption of concerts and securing mid- to long-term momentum through rookie debuts are also noteworthy."

Next year, the resumption of concerts and rookie momentum from three teams are expected. In 2022, the world tours of major lineups' concerts will resume. TWICE is scheduled for five North American arena tour dates in February, and NiziU is planning a Japan tour. ITZY and Stray Kids are also expected to tour Japan and North America.

Following the confirmed debuts of Xdinary Heroes (boy group) in December and Blind Package (girl group) in February, LOUD (boy group) will also debut, making a total of three teams. In particular, Blind Package's pre-orders for their debut single limited edition exceeded 60,000 copies, which is about twice the initial sales volume of ITZY's first mini-album released in 2019, indicating rapid monetization potential. The researcher analyzed, "Since the world tours of major lineups such as TWICE and NiziU are scheduled in 2022, significant growth in ticket and merchandise sales is expected. Additionally, the debut of three rookie teams will enhance mid- to long-term growth momentum."

NH Investment & Securities estimated JYP Entertainment's Q4 performance this year at 60.2 billion KRW in sales and 17.6 billion KRW in operating profit, representing increases of 44% and 68% respectively compared to the same period last year. The researcher explained, "The Q4 performance is expected to meet market consensus as three domestic concerts by TWICE are scheduled despite ongoing COVID-19 uncertainties, and new releases from all lineups are planned."